Gold Prices Rise Post DeepSeek's AI-Driven Rout As Trump's Proposed Tariff Hikes Spark Concerns
Uncertainties have risen on the global front after Trump's tariff talks. This has pushed demand for gold higher again.
Gold rates have held steady at over Rs 80,000 per 10 grams since Jan. 24, and they are on an upward climb. Apart from the tension around tariffs, the other factor increasing investors' attention towards the safe-haven commodity has been DeepSeek's new AI model-driven tech selloff.
"Gold and silver prices have remained stable, recovering slightly after the tech-driven market selloff, as uncertainty about US tariffs has boosted safe-haven demand," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. In a speech, US President Donald Trump has stated he would impose tariffs on aluminium, copper, and steel to encourage producers to manufacture them in the United States, added Kalantri.
Uncertainties have risen on the global front after Trump's tariff talks. This has pushed demand for the yellow metal higher again. Prices had settled after hitting highs.
"COMEX Gold and Silver futures rebounded over 1% and 1.5% respectively on Tuesday, buoyed by a tech-led market sell-off. Investor interest in safe-haven assets surged amid escalating uncertainties over US President Trump's proposed tariffs," according to analysts Kaynat Chainwala and Riteshkumar Sahu from Kotak Securities.
US Treasury Secretary Scott Bessent suggested a 2.5% starting tariff, while Trump advocated higher rates, intensifying trade war concerns. Trump announced plans to impose tariffs on imported computer chips, pharmaceuticals, and steel to boost domestic manufacturing.
These policies, perceived as inflationary, raised fears of trade wars, further supporting bullion demand, according to the analysts.
Global And Futures Rate Check
Global spot gold prices were pushed higher at $2,672 as of 11:03 am, according to the World Gold Council.
The spot price in India stood at Rs 80,770 per 10 grams, according to the India Bullion Association. Chennai continued to see the highest nation-wide price at Rs 80,820.
Futures prices for Feb. 5 have risen by 0.07% and stood at Rs 80,342 per 10 grams, according to the Multi Commodity Exchange. The primary support, according to Kotak Securities, is Rs 80,161. The second support price is Rs 80,035, while the last one is Rs 79,627.
The primary resistance price for the February futures stood at Rs 80,569, according to Kotak Securities. The secondary resistance price is at Rs 80,695 and the last one is Rs 81,103.
Global prices had recently escalated to levels near the previous record high of the last six months. Prices had hit $2,777 on Oct. 30, 2024, according to the WGC. The prices had also seen a rise last week when they reached $2,776 on Friday.
